Vhi’s “unprecedented” decision to increase its health insurance premiums by 7% could well be followed by another rise in 2024. 

In March, Vhi announced their prices would rise by an average of 4.8% and they are set to rise a further 7% in October.

The company said it was aware many households are under financial pressures but that there was no alternative.

“The price increase is necessary to ensure that we continue to meet member’s healthcare needs,” Managing Director Aaron Keogh said.

“The pandemic brought significant impacts on healthcare delivery in Ireland but we have seen a strong recovery in the number of members accessing necessary healthcare treatments in all parts of the healthcare system through 2023.”

'I can’t rule out further increases'

Health insurance expert Dermot Goode said people should not be surprised if the cost continues to climb next year as well.

“Two increases of this magnitude is unprecedented,” he said.

“It’s about 10 years since we’ve seen this level of increase [and] I can’t rule out further increases early in 2024.”

Mr Goode said the price hike could cost a family of four “anything from €150 to €450” a year and urged consumers to shop around for a better deal.

“Probably about 25% of people shop around and switch and so on,” he said.

“But too many consumers of health insurance do nothing.

“They know they have good cover, they know it’s expensive and they roll that cover over each year.

“This, for me, is a catalyst for those people to really engage with the insurance companies.”

Vhi is the largest health insurance provider in the State - with some 1.2 million customers.

Yesterday, the second largest, Laya Healthcare, announced its 700,000 customers would also have to pay more from October.

Main image: A doctor and a patient.